/ CORRECTION - HydroFlo, Inc.

Market Wire, October, 2005

In the news release, "Wasserman Morris & Co. Initiates Coverage and Issues Research Report for HydroFlo With Price Target Upgrade to $2.10," issued Tuesday, October 4, 2005, by HydroFlo, Inc., we are advised by the company that the second sentence of the second paragraph should read, "Their report is available for viewing at http://www.wassermanmorris.com, and on Hydroflo's website at http://www.hydroflo.us/analyst reports.htm.," rather than "Their report is available for viewing at http://www.wassermanmorris.com." Also, a new sentence has been added to the end of the fourth paragraph which reads, "HydroFlo has paid Wasserman Morris the sum of $19,500 for 12 months of coverage as detailed in the report."

Complete corrected text follows.

Wasserman Morris & Co. Initiates Coverage and Issues Research Report for HydroFlo With Price Target Upgrade to $2.10

RALEIGH, NC -- 10/04/05 -- HydroFlo, Inc. (OTC BB: HYRF) today announced that New York-based Wasserman Morris & Company, an independent investment research firm, began its initial coverage of the Company.

Wasserman Morris & Company initiated coverage with a report that upgraded the previous price target from $0.47 to $2.10 well above its current trading price while maintaining a "Speculative Buy." Their report is available for viewing at http://www.wassermanmorris.com, and on Hydroflo's website at http://www.hydroflo.us/analyst reports.htm.

In the latest report Wasserman Morris & Company's analysts explained, "We raised the previous price target from $0.47to $2.10 per share and maintained the Speculative Buy Rating of HYRF's common stock. In our opinion, HYRF is succeeding in building a portfolio of companies in the water market that will enjoy cost and revenue synergies."

Wasserman Morris & Co. is an equity research firm providing un-biased research for significantly under-followed small cap companies. Wasserman Morris & Co. distributes its research to a broad audience of institutional and individual investors seeking information on under-followed small cap stocks. HydroFlo has paid Wasserman Morris the sum of $19,500 for 12 months of coverage as detailed in the report.

About HydroFlo

HydroFlo, Inc. (http://www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Raleigh, North Carolina, HydroFlo's core focus is to seek out synergistic acquisitions that will provide capital appreciation and income from its portfolio companies. The mission of HydroFlo is to locate, develop, and fund innovative technologies and businesses and utilize these acquisitions to make pure water available to the world by means of disinfection, purification, and removal of contaminants. It is our belief that water can overcome hunger, disease, poverty, and improve the overall quality of life on earth.

Its portfolio investment companies include: HydroFlo Water Treatment, Inc., www.hydroflo-inc.com, a business providing pre-treatment of wastewater by use of the PLUS pre-treatment system which provides a treatment process at the municipal pumping stations prior to the wastewater reaching a treatment plant; Metals & Arsenic Removal Technology, Inc., www.martiinc.com a business providing proprietary and innovative methods and services for the removal of arsenic from drinking water to meet the current EPA requirements of less than 10 parts per billion in drinking water by January 2006; and Safety Scan Technology, Inc., www.safety-scan.com a business that provides methods and equipment for the noninvasive testing of municipal, industrial, and potable water to insure safety.

HydroFlo, Inc. Mission Statement

The mission of HydroFlo is to locate, develop, and fund innovative technologies and businesses and utilize these acquisitions to make pure water available to the world by means of disinfection, purification, and removal of contaminants. It is our belief that water can overcome hunger, disease, poverty, and improve the overall quality of life on earth.

Forward-Looking Statements

Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.

Contact: HydroFlo, Inc. Investor Relations Rebecca Morgan 919-772-9925 Email Contact